State of the Insurance Market Report

2024 Initial Outlook
Environmental Liability Insurance

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Market Updates

Rising environmental claims such as indoor air quality, legionella, and redevelopment are driving up costs for the real estate and healthcare sectors. Additionally, social inflation is contributing to higher settlement expenses for environmental claims.

The U.S. President administration's focus on stricter environmental regulations reflects how environmental priorities change based on who is in office at the federal, state, and local levels. Prepare for any potential financial impacts if you are operating with environmental liability.

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Coverage Considerations

Anticipate tighter future regulations for Per- and Polyfluoroalkyl Substances (PFAS), potentially affecting insurance coverage. For companies dealing with PFAS, address possible liabilities as coverage may be limited until underwriters fully understand the risks.

Natural disasters and weather-related events like floods impact environmental liability. Proactively establish disaster contingency plans if your business is vulnerable.

Meticulous environmental due diligence is vital in mergers and acquisitions. Identify potential environmental risks in target companies to prevent surprises and strengthen risk management strategies.

Rate Forecast
Environmental*:   -5% to +5%
*Market remains soft and extremely competitive


Navigating the current environmental insurance market effectively requires a proactive approach.

  • Conduct a comprehensive risk review to identify potential environmental exposures in operations, products, and locations. Understanding these risks allows for proactive risk management.
  • Environmental insurance coverage is robust and cost-effective. Engage with insurance brokers specializing in environmental insurance to ensure adequate and tailored coverage.
  • Take advantage of specialized environmental programs offered by reputable carriers. These programs provide coverage enhancements and competitive premiums, especially for contractors involved in construction projects.
  • Before starting remediation projects, have a clear exit strategy in mind. Understanding potential hurdles and regulatory re-opener actions will help plan and mitigate long-term liabilities.
  • Promote environmental awareness within the organization. Implement safety procedures and environmental risk management practices to minimize potential liabilities.

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The contents of this report are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.